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Volume 2018 - Number 42

November 9, 2018

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Agency Single-Family MBS Production Softened in October as Purchase Market Continued to Deflate

New issuance of single-family MBS by Fannie Mae, Freddie Mac and Ginnie Mae took a predictable downward turn in October as seasonal factors weighed on the U.S. housing market and refinance activity continued to sputter. (Includes two data charts.)

Single-Security Transition is on Schedule, But Some Market Participants May Still Prefer One GSE Over the Other

Fannie Mae and Freddie Mac officials are confident that the single-security will launch successfully in the to-be-announced market next June, although some market participants at last week’s Residential Mortgage Finance Symposium in New York still have some jitters.

Federal Regulators’ Proposal to Loosen Capital/Liquidity Requirements Could Prompt Banks to Cut MBS Holdings

A proposal issued by federal regulators last week to ease certain standards for capital and liquidity will likely prompt banks to reduce their holdings of MBS, according to industry analysts. The complex proposal could prompt a $65.0 billion reduction in bank holdings of MBS, according to estimates by the Federal Reserve and Wells Fargo Securities.

Investors Face a Maze of Structural Issues in Assessing Value in Non-Agency MBS

Deal structure – everything from pre-issuance loan reviews to enforcement mechanisms when things go wrong – vary significantly in the non-agency MBS market, experts noted at the Structured Finance Industry Group’s recent residential mortgage conference in New York.

Mortgage REITs Keep Selling Shares and Raising Cash. What Will They Do With the Added Capital?

So far this year, publicly traded real estate investment trusts that specialize in mortgages have raised $4.8 billion by selling additional shares of stock, on par with what they did all of last year. Now, comes the big question: What are they doing with all that money?

Fannie, Freddie Continue to Carve Away at Retained Mortgage Investment Portfolios, Earn $6.7B in 3Q

Fannie Mae and Freddie Mac reported $6.72 billion in net income during the third quarter, down 3.5 percent from the previous quarter. The government-sponsored enterprises have also been actively whittling down their retained portfolios.

Goldman Nears Settlement Goal, DOJ to File MBS Suit Against UBS, BofA Settles, MBIA Chalks Up Win

Goldman Sachs has forgiven a total of $78.7 million in principal on 746 first-lien mortgages since Aug. 1, 2018, as it neared fulfillment of a $1.8 billion consumer-relief obligation under two mortgage-related settlement agreements, according to independent monitor Eric Green.

MBS and ABS Issuance at a Glance: November 9, 2018

A full page of issuance data and MBS market indicators.


With loan volumes declining, does your shop have plans to enter the non-QM lending market in 2019?

Yes, definitely. A solid move forward.
Yes, but only incrementally.
We’re pondering a move into non-QM, but haven’t made up our mind.
No, definitely not. We view it has too risky.

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